Asia markets rally on easing Middle East tensions

May 21, 2026 (MLN): Asian markets rallied on Thursday, following a strong overnight performance on Wall Street as easing concerns over tensions in the Middle East lifted investor sentiment and pressured oil prices lower.

Investor confidence improved after U.S. President Donald Trump said Washington was in the “final stages” of negotiations with Iran, showing the possibility of reduced geopolitical tensions in the region, according to CNBC.

Despite recent volatility in energy markets caused by the Trump administration’s blockade of Iranian ports and disruptions around the Strait of Hormuz, crude oil prices retreated sharply in the previous session.

Brent crude later edged up 0.67% to $105.72 per barrel during Asian trading, while West Texas Intermediate (WTI) crude rose 0.78% to $99.03 per barrel after both benchmarks had dropped more than 5% on Wednesday.

Japan led regional gains, with the Nikkei 225 surging 3.52% after stronger-than-expected trade figures boosted market sentiment.

Japan’s exports climbed 14.8% year-on-year in April, marking the fastest growth since January, driven largely by robust semiconductor shipments.

Imports increased 9.7% from a year earlier, while the country’s trade deficit narrowed to 301.9bn yen from 643bn yen in March.

Shares of SoftBank Group jumped nearly 20%, supported by renewed optimism surrounding artificial intelligence after Nvidia posted stronger-than-expected earnings overnight.

South Korean stocks also posted significant gains, with the Kospi index soaring 7.68% and the small-cap Kosdaq advancing 5.02%.

Samsung Electronics rose more than 6% after the company reached a breakthrough in wage negotiations, preventing a large-scale strike involving over 47,000 workers.

Chipmaker SK Hynix climbed 11% amid continued strength in AI-related technology shares.

Adding to positive sentiment, South Korea’s finance ministry announced that 24-hour dollar-won spot trading will begin on July 6 as part of broader capital market reforms aimed at supporting economic growth.

Elsewhere in the region, Australia’s S&P/ASX 200 gained 1.69%, while China’s CSI 300 index added 0.56%. Hong Kong’s Hang Seng Index erased earlier gains to trade flat later in the session.

Indian equities also traded in positive territory, with the Nifty 50 rising 0.42% and the BSE Sensex advancing 0.50%.

Meanwhile, U.S. stock futures turned slightly lower after Wall Street’s rally. Futures linked to the S&P 500 fell 0.3%, Nasdaq 100 futures declined 0.4%, and Dow futures slipped 52 points.

In the previous session, Wall Street closed firmly higher as investor appetite improved. The Dow Jones Industrial Average climbed 645 points, or 1.31%, to settle above the 50,000 mark at 50,009.35.

The S&P 500 gained 1.08%, while the Nasdaq Composite advanced 1.54%.

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